GST Appellate Authority Approves Cash Refund of ₹3.96 Lakh Pre-Deposit with Interest @ 6% p.a. in Penalty Dispute Case

The Goods and Services Tax Appellate Authority (GSTAT) has approved a cash refund of ₹3.96 lakh pre-deposit with 6% interest per annum in a penalty dispute case. This decision provides significant relief to the taxpayer, confirming that once a dispute is resolved in favor of the appellant, the pre-deposit made during the appeal process, along with applicable interest, must be refunded. The 6% interest rate compensates the taxpayer for the time their funds were held by the department. This ruling underscores the principle of fairness in tax administration, ensuring that taxpayers are not unduly penalized for disputing contested demands.